DXC Technology’s Stock Down By 12%, What Is The Likelihood Of Rise Next Month?
DXC Technology stock (NYSE: DXC) has fallen 12.4% over the last five trading days as companies suffered due to the market fall after the Fed moved up its rate hike timeline due to inflationary concerns. In comparison, the broader S&P500 fell by 2.1% over the last five trading days. Will the company resume an upward trajectory over the coming weeks, or will the fall in the stock continue? According to the Trefis Machine Learning Engine, which identifies trends in a company’s stock price using multiple years of historical stock data, returns for DXC’s stock average around 0.1% in the next one-month (twenty-one trading days) period after experiencing a 12.4% fall in a week (five trading days). But how would these numbers change if you are interested in holding DXC stock for a shorter or a longer time period? You can test the answer and many other combinations on the Trefis Machine Learning Engine to test DXC Technology stock chances of a rise after a fall. You can test the chance of recovery over different time intervals of a quarter, month, or even just one day!
MACHINE LEARNING ENGINE – try it yourself:
IF DXC stock moved by -5% over 5 trading days, THEN over the next 21 trading days, DXC stock moves an average of 0.3 percent with a 59.3% probability of a positive return over this period.
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Some Fun Scenarios, FAQs & Making Sense of DXC Technology Company Stock Movements
Question 1: Is the average return for DXC Technology Company stock higher after a drop?
Answer:
Case 1: DXC Technology Company stock drops by -5% or more in a week
Case 2: DXC Technology Company stock rises by 5% or more in a week
Is the average return for DXC Technology Company stock higher over the subsequent month after Case 1 or Case 2?
DXC stock fares better after Case 2, with an average return of 0.3% over the next month (21 trading days) under Case 1 (where the stock has just suffered a 5% loss over the previous week), versus, an average return of 3.2% for Case 2.
In comparison, the S&P 500 has an average return of 3.1% over the next 21 trading days under Case 1, and an average return of just 0.5% for Case 2 as detailed in our dashboard that details the average return for the S&P 500 after a fall or rise.
Try the Trefis machine learning engine above to see for yourself how DXC Technology Company stock is likely to behave after any specific gain or loss over a period.
Question 2: Does patience pay?
Answer:
If you buy and hold DXC Technology Company stock, the expectation is over time the near-term fluctuations will cancel out, and the long-term positive trend will favor you – at least if the company is otherwise strong.
Overall, according to data and Trefis machine learning engine’s calculations, patience absolutely pays for most stocks!
For DXC stock, the returns over the next N days after a -5% change over the last 5 trading days is detailed in the table below, along with the returns for the S&P500:
You can try the engine to see what this table looks like for DXC Technology Company after a larger loss over the last week, month, or quarter.
Question 3: What about the average return after a rise if you wait for a while?
Answer:
The average return after a rise is understandably lower than after a fall as detailed in the previous question. Interestingly, though, if a stock has gained over the last few days, you would do better to avoid short-term bets for most stocks.
DXC’s returns over the next N days after a 5% change over the last 5 trading days is detailed in the table below, along with the returns for the S&P500:
It’s pretty powerful to test the trend for yourself for DXC Technology Company stock by changing the inputs in the charts above.
While DXC Technology Company stock may have moved, it is helpful to see how its peers stack up. Check out Accenture Peer Comparisons to see how Accenture compares against peers on metrics that matter. You can find more such useful comparisons on Peer Comparisons.
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